After an accident, many injury victims focus on the settlement amount discussed during negotiations. While that number is important, it does not accurately reflect the amount of money an injured person actually receives. In Chicago personal injury cases, settlement funds are divided among several fees, expenses, and legal obligations before the injured party receives their share.
Understanding how a personal injury settlement is broken down under Illinois law can help accident victims avoid confusion and make informed decisions during the claims process.
What Makes Up a Personal Injury Settlement in Illinois?
A personal injury settlement is designed to compensate someone for losses caused by another party’s negligence. In Illinois, settlements typically include a combination of economic and non-economic damages.
Economic damages encompass measurable financial losses, including medical expenses, rehabilitation costs, lost wages, and reduced earning capacity.
Non-economic damages compensate for losses that are not tied to a bill or receipt, including pain and suffering, emotional distress, and diminished quality of life.
While these categories determine the total settlement value, they do not reflect what ultimately goes into the injured person’s pocket.
Attorney’s Fees and Contingency Agreements
Most personal injury cases are handled under a contingency fee agreement. This arrangement means the attorney is paid a percentage of the recovery rather than charging hourly fees. If the case does not result in compensation, attorney’s fees are generally not owed.
The fee percentage depends on several factors, including whether the case settles early or proceeds to litigation. Attorney’s fees are deducted from the settlement before any funds are distributed to the client, which can significantly affect the final amount received.
Case Costs and Litigation Expenses
In addition to attorney’s fees, settlements often account for case-related costs.
These expenses are separate from legal fees and may include:
- Court filing fees
- Costs for obtaining medical records
- Expert witness fees
- Deposition and transcript expenses
- Accident investigation costs
Many law firms advance these costs while the case is ongoing and recover them from the settlement after resolution. These deductions further reduce the amount that goes to the injured person.
Medical Bills, Liens, and Subrogation Claims
Medical expenses are often the most significant factor affecting a personal injury settlement breakdown. In Illinois, healthcare providers and insurance companies may have legal rights to reimbursement from settlement proceeds.
These rights often take the form of medical liens or subrogation claims. A lien allows a provider or insurer to be paid directly from the settlement for treatment related to the injury. Resolving these liens is a critical step in finalizing a case, as unpaid liens can delay or reduce payment to the injured party.
Negotiating liens can sometimes lower the amount owed, increasing the injured person’s take-home compensation.
How Illinois Comparative Fault Impacts Recoverable Compensation
Illinois follows a modified comparative fault system. If an injured person is partially responsible for an accident, their compensation is reduced by their percentage of fault. If the victim is found to be 51% or more at fault, they may be barred from recovering damages.
When a settlement is reduced due to comparative fault, all deductions—attorney’s fees, costs, and liens—are taken from a smaller total. Even a minor fault finding can significantly impact the amount of compensation ultimately awarded to the injured person.
Reviewing a Settlement Breakdown Before Accepting
Because numerous factors influence settlement distribution, reviewing a detailed breakdown before accepting an offer is crucial. A clear explanation of fees, costs, liens, and deductions helps injured individuals understand what they will actually receive.
Careful review can prevent surprises and ensure that settlement funds are distributed accurately and efficiently.
Contact the Chicago Personal Injury Attorneys at Zayed Law Offices Personal Injury Attorneys for a Free Consultation Today
Understanding how personal injury settlements are divided can make a difficult situation more manageable. Zayed Law Offices Personal Injury Attorneys helps Chicago personal injury victims understand settlement breakdowns, address liens, and evaluate compensation offers.
For more information, contact an experienced Chicago personal injury lawyer to schedule a free consultation today.
We proudly serve Cook County, Will County, Kendall County, and their surrounding areas:
Zayed Law Offices Personal Injury Attorneys – Chicago Office
10 S La Salle St STE 1230, Chicago, IL 60603
Phone:(312) 726-1616
Hours: Open 24/7
Our firm is located near you. We have an office in Chicago
Find us with our GeoCoordinates: 41.8815493,-87.6327515
Zayed Law Offices Personal Injury Attorneys – Joliet Office
195 Springfield Ave, Joliet, IL 60435
Phone: (815) 726-1616
Our firm is located near you. We have an office in Joliet
Find us with our GeoCoordinates: 41.5254295,-88.1381011
Zayed Law Offices Personal Injury Attorneys – Rockford Office
318 N 1st St, Rockford, IL 61107
Phone:(815) 662-0330
Hours: Open 24/7
